Type
Article
Title
Competition and Increasing Returns
In
Journal of Economics and Statistics
Author(s)
AMENDOLA Mario - Dipartimento di Scienze Sociali ed Economiche (Author)
GAFFARD Jean-Luc - Observatoire français des conjonctures économiques (Author)
Volume
234
Number
2-3
Pages
257 - 273 p.
ISSN
00214027
DOI
10.1515/jbnst-2014-2-309
Keywords
Competition, Increasing returns, Time to build, Viability
Abstract
EN
The paper demonstrates the compatibility between competition as a rivalry among firms and increasing returns resulting from innovative choice. The analysis offers the prospect of a general theory of economic evolution. It is carried out by means of a model, which makes it possible to exhibit the time structure of production processes and to sketch out the sequential interaction of decisions in a process of restructuring of productive capacities for the whole economy. It shows that several firms can coexist in the market, despite the existence of increasing returns, yet remain differentiated not so much because they supply differentiated goods, but because they are each one at a different stage of the life cycle of the production process.

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